The European Investment Bank (EIB) has agreed to provide a long-term loan of €310m to Snam for the development of gas network Italy.

The loan will be used by Snam in strengthening the gas network in the country to make it more secure, efficient, flexible and interconnected.

The funding aims at financing investments for an overall estimated cost of more than €600m for the project. Its will be used for the extension of the network of gas transportation and for the construction of a pipeline to connect distribution areas for local consumption to a new storage site of Cornegliano Laudense.

It will help to upgrade measuring systems located at redelivery points of the transportation network by acquiring metering systems from final customers. Energy efficiency will be improved at two compressor stations.

The network of existing assets will be modernised and replaced to increase their reliability, security and operational efficiency across various regions. Odorisation systems will be installed for industrial final customers.

Recently, Snam had agreed to acquire 100% stake in Infrastrutture Trasporto Gas and 7.3% stake in the offshore Terminale GNL Adriatico (Adriatic LNG) terminal from Edison for a consideration of €225m.

The acquisition is expected to close by the end of this year and once completed, it will mark the end of EDF’s subsidiary Edison to exit from Adriatic LNG which is 70.7% owned by ExxonMobil and 22% by Qatar Petroleum.

Snam CEO Marco Alverà said: “This investment enables us to strengthen our infrastructure in Italy as well as exploit new synergies in the integrated management of the gas system, adding a significant pipeline to our network and connecting a strategic entry point that was not under Snam’s control”.